On 31 January 2023, the board of the telecommunications company had announced that its board has approved preferential issuance of upto 16,000 Indian Rupee denominated optionally convertible, unsecured, unrated and unlisted debentures having a face value of Rs 10 lakh each, in one or more tranches, aggregating upto Rs 1,600 crore, convertible into equity shares at a conversion price of Rs 10 per equity share, to ATC, a non-promoter of the company.

The OCDs shall carry a coupon rate of 11.2% per annum, payable semi-annually during its term.

In continuance with the same, Vodafone Idea informed that the capital raising committee of the board of directors of the company has, at its meetings held on 27 February 2023, allotted a total of 12,000 number of unsecured, unrated and unlisted optionally convertible debentures of the face value of Rs 10 lakh each (OCDs) to ATC Telecom Infrastructure.

The company further said that the balance 4,000 number of OCDs shall be allotted upon receipt of application form and subscription money and due intimation of the same shall be filed as necessary.

“The funds so raised shall be used to pay amounts owed by the company to ATC under the master lease agreements and, to the extent of the remainder, for general corporate purposes of the company,” Vodafone Idea had said in a statement.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms. It holds large spectrum portfolio including mid band 5G spectrum in 17 circles and mmWave 5G spectrum in 16 circles.

The company had reported net loss of Rs 7990 crore in Q3 December 2022, higher than net loss of Rs 7230.90 crore in Q3 December 2021. Net sales rose 9.2% year-on-year to Rs 10613 crore in Q3 December 2022, aided by improvement in subscriber mix, tariff intervention and 4G subscriber additions.

The scrip advanced 0.60% to currently trade at Rs 6.72 on the BSE.